Tagged 'carriage fees'

The War We Started Is Heating Up

Posted by Matt Rosenberg on October 19th, 2010 at 11:22 am

This weekend, Fox stations began to disappear from the NY-based Cablevision system, which provides service to about 3 million homes. The rhetoric is about News Corp’s greed or about Cablevision’s unwillingness to fairly compensate News Corp for the value of their programming. That’s the battle, but not the war.
We are seeing more and more disputes between cable operators and networks over carriage fees. The reason for this is that ad-supported networks are preparing for the day when they can’t support the cost of programming through ad revenue. In fact, they already rely on carriage fees. But as more and more viewers look at cable only as a pipe filled with shows and live viewing dwindles, the audience is skipping the ads. As advertisers realize that so many of the impressions they are buying are being delivered but not seen, the advertising income line on a network’s balance sheet will soften. That loss will need to be made up somewhere else, and the most obvious else is carriage fees.
We have been studying the audience that is removing itself from interruptive advertising’s reach and it is a very large audience. They aren’t... Read more